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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10323
September17, 2019
To the Mayor and Members of the City Council
Page 1 of 2
SUBJECT:
This Informal Report is provided in response to an inquiry on the use of revenue derived from
income of the Fort Worth Permanent Fund (Trust) to fund acquisition land.
Since the first gas well revenue policy was adopted by the Fort Worth City Council in 2005, the
criteria for expenditure of the funds has placed a focus on non-routine and one-time expenditures.
As examples of eligible land and building purchases,
construction and maintenance projects with at least a 10-year life, feasibility, design and
engineering studies related to such projects, capital equipment and vehicles with at least a 10-
year life, and technology improvements with at least a 5-year (M&C G-14767)
The gas revenue policy was revised a number of times since it was first enacted, but the focus of
the expenditure criteria has remained largely the same. (M&Cs G-15715, G-16013, and G-
16632)
According to the current version of the Gas-Related Revenue & Expense/Expenditure Policy,
adopted by the City Council on November 1, 2016 (M&C G-18872), expenditures/expenses of
revenues derived from lease bonuses and royalties, other gas-related revenue, and distributions
from the Trust/Endowment Funds shall be appropriated for one-time program initiatives and
capital projects which meet one or more of the program and project criteria listed below:
Capital projects with a minimum ten (10) year useful life;
To provide matching grant funds to leverage funds for capital projects;
Technology with a minimum five (5) year useful life;
Acquisition of equipment and fleet assets including contributions to a revolving
replacement fund;
Capital equipment with a minimum ten (10) year useful life;
To fund one-time community-wide economic and neighborhood development initiatives
and projects;
To fund labor and materials associated with production, distribution and establishment
activities for trees on public property (including school and county property);
To periodically transfer funds to the General Fund to offset budgeted administrative costs
agreements, with the allocation of the cost being proportional among all gas revenue funds
ve percentage of the total revenue collected in all funds
(including the Trust/Endowment funds and City affiliated corporation funds) during that
reporting period;
To periodically transfer Park funds from gas lease and pipeline revenues to the General
Fund to offset program costs associated with leases, conversions, and pipelines;
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10323
September17, 2019
To the Mayor and Members of the City Council
Page 2 of 2
SUBJECT:
To replenish the Unassigned Fund Balance (for the General Fund), Assigned Fund
Balance (all other Governmental Funds except the General Fund), or Net Position (for
Enterprise Funds), if necessary, in any designated City fund, to meet the minimum reserve
requirements established for that fund;
To make payments in support of arts organizations provided, however, such payments
may only be made using distributions from the General Endowment Gas Lease Fund and
not from bonus, royalties, ad valorem tax revenues, or any other gas-related revenue.
Based on the criteria above, it is staffthat the cost to acquire pen Space land is an
eligible expenditure of income from the Fort Worth Permanent Fund (Trust) within the letter of
current policy.
If you have any questions, please call Reginald Zeno, Director of Financial Management Services
/ Chief Financial Officer, at 817-392-8500.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS